Commission’s director is linked to insurance scam

Posted on Wednesday, April 30, 2008

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The executive director of the Martin Luther King Jr. Commission made misrepresentations on five accident claims from 1996 through 2000, the state Department of Insurance has said.

The claims are in a Pulaski County Circuit Court case in which Little Rock cousins Mark Anthony Watson and Fredrick Odell “Rick” Watson are accused of running a car-insurance fraud ring for almost 12 years. Their trial is scheduled to begin July 29.

A prosecuting attorney for the Department of Insurance filed the charges against the Watsons.

King Commission Executive Director DuShun Scarbrough has not been charged with a crime, said Julie Bowman, the state’s insurance commissioner.

Scarbrough said he wasn’t aware that he was mentioned in any investigation by the Department of Insurance. “No one has asked me any questions about anything,” he said.

Asked if the claims are true, he said, “No.” He declined further comment.

Bowman said Scarbrough has not been cooperative with the department. She said the department’s investigators left cards at his office and home asking him to call them, but he has not contacted the department.

Some Martin Luther King Jr. commissioners said Tuesday they weren’t aware of the allegations.

“I have no clue what you are talking about,” said Commissioner Diane Charles of Little Rock, chairman of the commission’s personnel committee. “This is the first I have heard of it. I can promise you that.” The commission’s background check on Scarbrough didn’t yield the allegations, she said.

“It’s news to me,” said Commissioner Booker Clemons of Pine Bluff, a former state representative.

Commissioner Odies Wilson of Little Rock said he was notified late last month “there was something amiss.” But, he said, “I am waiting on the court to render its position.” Bowman said she didn’t notify the commission about the claims.

According to an amended bill of particulars filed on April 18 against the Watsons in Pulaski County Circuit Court, Scarbrough made misrepresentations to an insurance carrier about his claim, how a crash happened and the extent of his injuries in connection with accidents on Aug. 12, 1996; Aug. 7, 1997; and Oct. 13, 1997. He was a passenger in either of the Watsons’ vehicles, the document shows.

Scarbrough accepted $ 5, 000, $ 6, 000, $ 1, 256 and $ 2, 081 insurance checks based on his misrepresentations, the complaint stated.

He made misrepresentations about his claim, the cause of the collision and the extent of his injuries in connection with an Aug. 7, 1999, accident in which a rental car that he was driving intentionally struck another vehicle, the complaint said. He accepted an insurance payment of $ 3, 367 for rental car damage and $ 1, 924 for alleged bodily injuries based on his misrepresentations, the complaint said. Mark Watson was a passenger in the vehicle the according to the complaint.

According to the complaint, Scarbrough made misrepresentations about his claim, the cause of the crash and the extent of his injuries in connection with an April 1, 2000, accident when he was driving a rental car, with Frederick Watson as a passenger.

Similar allegations were made in a December court filing.

Scarbrough started working for the commission on March 5. He’s paid $ 59, 000 a year.

His previous job was with Sunrise Community Inc. of Tallahassee, Fla., supervising 80 employees, according to his job application. The application said he wanted to return home to Little Rock.

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